Festi hf. Launches Buyback Program to Enhance Share Value
Festi hf. Unveils New Buyback Program for Shareholders
At the recent Annual General Meeting, the shareholders of Festi hf. took a pivotal step towards enhancing shareholder value by approving a buyback program aimed at acquiring up to 10% of the company's issued shares. This approval aligns with Article 55 of the Act on Public Limited Companies, demonstrating the board's commitment to strategic financial management and supporting shareholders.
Objectives of the Buyback Program
The primary goal of this share buyback initiative is twofold: to reduce the company's share capital and to fulfill obligations stemming from stock option agreements with employees. By executing this program, Festi aims to empower its shareholders by potentially increasing the value of their investments while also maintaining the flexibility to meet employee compensation commitments.
Details of the Buyback Operations
The Board of Directors has outlined a clear plan to acquire up to 2,500,000 of its own shares, which represents approximately 0.80% of the total shares. However, the total expenditure for this buyback will not exceed ISK 800 million. This prudent financial decision reflects the board's commitment to optimizing capital structure while providing returns to shareholders.
The buyback will proceed in stages, with a maximum of 100,000 shares being repurchased each day. This figure corresponds to 12.57% of the average daily trading volume of Festi shares on Nasdaq OMX Iceland over the month of May, ensuring that the program maintains a balance with market activity.
Program Timeline and Oversight
Scheduled to commence on June 30, the buyback program is designed to run until December 31, unless the maximum purchase limit is reached earlier. This timeline shows the company's proactive approach to implementing their share repurchase strategy.
Arion Banki hf. has been appointed to oversee and manage the execution of this program, including determining the timing of acquisitions, independent of Festi’s direct influence. This ensures that the process is conducted with integrity and in compliance with all regulatory guidelines.
Compliance and Reporting
The execution of the buyback program will be conducted following the regulatory frameworks established under the Act on Public Limited Companies, as well as compliance with market abuse regulations. Additionally, any trades executed under this program will be reported on the seventh trading day following the acquisition, maintaining transparency with investors.
Current Shareholding Status
Prior to the commencement of the buyback, Festi holds 246,226 shares, accounting for 0.08% of its total issued share capital. This existing stock will not interfere with the new acquisitions, as the company seeks to bolster its market position even further.
Contact Information for Inquiries
For those seeking further information about the buyback program, Magnús Kr. Ingason, CFO of Festi, is available at mki@festi.is.
Frequently Asked Questions
What is the purpose of the Festi hf. buyback program?
The buyback program aims to reduce share capital and fulfill obligations related to employee stock options.
How many shares will Festi hf. repurchase?
Festi plans to buy back up to 2,500,000 shares, approximately 0.80% of its total shares.
Who oversees the buyback program?
Arion Banki hf. will supervise the execution of the buyback program independently.
When will the buyback program commence?
The program is set to start on June 30 and will continue until December 31.
How can investors get more information?
Investors can contact Magnús Kr. Ingason at mki@festi.is for any inquiries related to the buyback program.
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